Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1.R.S.39:10-19 is amended to read as follows:

39:10-19. No person shall
engage in the business of buying, selling or dealing in motor vehicles in this
State, nor shall a person engage in activity that would qualify the person as a
leasing dealer, as defined in section 2 of P.L.1994, c.190 (C.56:12-61),
unless: a. the person is a licensed real estate broker acting as an agent or
broker in the sale of mobile homes without their own motor power other than
recreation vehicles as defined in section 3 of P.L.1990, c.103 (C.39:3-10.11),
or manufactured homes as defined in section 3 of P.L.1983, c.400 (C.54:4-1.4);
or b. the person is authorized to do so under the provisions of this chapter and
P.L.1985, c.361 (C.56:10-26 et seq.).

The chief administrator may,
upon application in such form as the chief administrator prescribes, license
any proper person as such dealer or leasing dealer. A licensed real estate
broker shall be entitled to act as an agent or broker in the sale of a mobile
or manufactured home as defined in subsection a. of this section without
obtaining a license from the chief administrator. For the purposes of this
chapter, a "licensed real estate broker" means a real estate broker
licensed by the New Jersey Real Estate Commission pursuant to the provisions of
chapter 15 of Title 45 of the Revised Statutes. Any sale or transfer of a
mobile or manufactured home, in which a licensed real estate broker acts as a
broker or agent pursuant to this section, which sale or transfer is subject to
any other requirements of R.S.39:10-1 et seq., shall comply with all of those
requirements.

No person who has been
convicted of a crime, arising out of fraud or misrepresentation in the sale,
leasing or financing of a motor vehicle, shall be eligible to receive a
license. For the purposes of this section, each applicant for a license shall
submit to the chief administrator the applicant's name, address, fingerprints,
and written consent for a criminal history record background check to be
performed. The chief administrator is hereby authorized to exchange
fingerprint data with and receive criminal history record information from the
State Bureau of Identification in the Division of State Police and the Federal
Bureau of Investigation consistent with applicable State and federal laws,
rules, and regulations, for purposes of facilitating determinations concerning
licensure eligibility. The applicant shall bear the cost for the criminal
history record background check, including all costs of administering and processing
the check. The Division of State Police shall promptly notify the chief
administrator in the event a current holder of a license or prospective
applicant, who was the subject of a criminal history record background check
pursuant to this section, is arrested for a crime or offense in this State
after the date the background check was performed.

Each applicant for a license
shall at the time such license is issued have established and maintained, or
by that application shall agree to establish and maintain, within 90 days
after the issuance thereof, a place of business consisting of a permanent
building not less than 1,000 square feet in floor space located in the State of
New Jersey to be used principally for the servicing and display of motor vehicles
with such equipment installed therein as shall be requisite for the servicing
of motor vehicles in such manner as to make them comply with the laws of this
State and with any rules and regulations made by the board governing the
equipment, use, and operation of motor vehicles within the State. However, a
leasing dealer, who is not engaged in the business of buying, selling, or
dealing in motor vehicles in the State, shall not be required to maintain a
place of business with floor space available for the servicing or display of
motor vehicles or to have an exterior sign at the lessor's place of business.

A license fee of $200 shall be
paid by an applicant upon the applicant's initial application for a license.
The chief administrator may renew an applicant's license upon application for
renewal on a form prescribed by the chief administrator and accompanied by a
renewal fee of $200. Every license shall expire 24 months from the date on
which it is issued. The chief administrator may, at the chief administrator's
discretion and for good cause shown, extend an applicant's license for an
additional period not to exceed 12 months from the date on which it is
scheduled to expire. The chief administrator may, at the chief administrator's
discretion and for good cause shown, issue a license which shall expire on a
date fixed by the chief administrator. The fee for licenses with an expiration
date fixed by the chief administrator shall be fixed by the chief administrator
in an amount proportionately less or greater than the fee established herein.

For the purposes of this
section, a leasing dealer or an assignee of a leasing dealer whose leasing
activities are limited to buying motor vehicles for the purpose of leasing them
and selling motor vehicles at the termination of a lease shall not be deemed to
be engaged in the business of buying, selling, or dealing in motor vehicles in
this State.

(cf: P.L.2007, c.335, s.24)

2. Section 1 of P.L.1985,
c.361 (C.56:10-26) is amended to read as follows:

1. As used in this act:

[a.] "Consumer"
means the purchaser, other than for resale, of a motor vehicle [;].

“Electric motor vehicle”
means a motor vehicle that uses a battery to store the electrical energy to
power the vehicle’s motor, including a battery electric vehicle, and that is
charged or recharged from an external source of electricity, such as by
plugging the vehicle into an electric power source. An electric motor vehicle
shall not include a hybrid electric vehicle.

[b.] "Franchise"
means a written arrangement for a definite or indefinite period in which a
motor vehicle franchisor grants a right or license to use a trade name,
trademark, service mark or related characteristics and in which there is a
community of interest in the marketing of new motor vehicles at retail, by
lease, agreement or otherwise [;].

[c.]
"Motor vehicle" means and includes all vehicles propelled
otherwise than by muscular power, and motorcycles, trailers and tractors,
excepting: (1) those vehicles as run only upon rails or tracks, motorized
bicycles, and buses, including school buses; and (2) those motor vehicles not
designed or used primarily for the transportation of persons or property and
only incidentally operated or moved over a highway [;].

[d.] "Motor
vehicle franchisee" means a person to whom a franchise is granted by a
motor vehicle franchisor and who or which holds a current valid motor vehicle
dealer's license issued pursuant to R.S.39:10-19 and has an established place
of business [;].

[e.]
"Motor vehicle franchisor" means a person engaged in the business of
manufacturing, assembling or distributing new motor vehicles, or importing into
the United States new motor vehicles manufactured or assembled in a foreign
country, who will under normal business conditions during the year,
manufacture, assemble, distribute or import at least 10 new motor vehicles [;].

[f. "Place of business" means a
fixed geographical location at which the motor vehicle franchisor's motor
vehicles are offered for sale and sold, but shall not include an office, a
warehouse, a place of storage, a residence or a vehicle;

g.] "New motor vehicle" means a
newly manufactured motor vehicle [;].

[h.] "Person"
means a natural person, corporation, partnership, trust, or other entity and,
in the case of an entity, it shall include any other entity which has a
majority interest in that entity or effectively controls that other entity as
well as the individual officers, directors, and other persons in active control
of the activities of each such entity.

"Place of
business" means a fixed geographical location at which the motor vehicle
franchisor's motor vehicles are offered for sale and sold, but shall not
include an office, a warehouse,
a place of storage, a residence or a vehicle.

(cf: P.L.1991, c.409, s.1)

3. Section 2 of P.L.1985,
c.361 (C.56:10-27) is amended to read as follows:

2. [It]Except as provided
pursuant to section 5 of P.L. , c. (C. )
(pending before the Legislature as this bill), it shall be a violation of
this act for any motor vehicle franchisor, directly or indirectly, through any
officer, agent, employee, broker or any shareholder of the franchisor, except a
shareholder of 1% or less of the outstanding shares of any class of securities
of a franchisor which is a publicly traded corporation, or other person, to
offer to sell or sell motor vehicles, to a consumer, other than an employee of
the franchisor, except through a motor vehicle franchisee.

(cf: P.L.1985, c. 361, s. 2)

4. Section 3 of P.L.1985,
c.361 (C.56:10-28) is amended to read as follows:

3. [It]Except as provided
pursuant to section 5 of P.L. , c. (C. )
(pending before the Legislature as this bill), it shall be a violation of
this act for a motor vehicle franchisor, directly or indirectly, through any
officer, agent, employee, broker or any shareholder of the franchisor, except a
shareholder of 1% or less of the outstanding shares of any class of securities
of a franchisor which is a publicly traded corporation, or other person, to own
or operate a place of business as a motor vehicle franchisee, except that this
section shall not prohibit the ownership or operation of a place of business by
a motor vehicle franchisor for a period, not to exceed 24 consecutive months,
during the transition from one motor vehicle franchisee to another; or the
investment in a motor vehicle franchisee by a motor vehicle franchisor if the
investment is for the sole purpose of enabling a partner or shareholder in that
motor vehicle franchisee to acquire an interest in that motor vehicle
franchisee and that partner or shareholder is not otherwise employed by or
associated with the motor vehicle franchisor and would not otherwise have the
requisite capital investment funds to invest in the motor vehicle franchisee,
and has the right to purchase the entire equity interest of the motor vehicle
franchisor in the motor vehicle franchisee within a reasonable period of time
not to exceed 10 years.

(cf: P.L.1993, c.189, s.4)

5. (New section) Notwithstanding
the provisions of any law, rule or regulation to the contrary, a motor vehicle franchisor
who manufactures electric motor vehicles may directly buy an electric motor
vehicle from a consumer and may directly sell, offer to sell, or deal an
electric motor vehicle directly to a consumer if the franchisor is licensed
pursuant to R.S.39:10-19.

6. This act shall take
effect immediately.

STATEMENT

This bill would allow a
franchisor (manufacturer) to directly buy or sell electric motor vehicles to
consumers under certain conditions.

This bill amends current law
to allow any motor vehicle franchisor who manufactures electric motor vehicles to
directly buy an electric motor vehicle from, and directly sell, offer to sell,
or deal an electric motor vehicle to, a consumer if the manufacturer is
licensed by the New Jersey Motor Vehicle Commission (MVC). Current law, at R.S.39:10-19,
requires a person engaged in the business of buying, selling or dealing motor
vehicles to be licensed by the MVC. However, P.L.1985, c.361 (C.56:10-26 et
seq.) provides that automobile sales may be sold only through franchises, which
precludes manufacturer Tesla Motors from also being a dealer of its motor
vehicles.